by wildcherry on Thursday, March 12th, 2009 | Business, News, World

Madoff: ‘I knew this day would come’

Accused $50 billion swindler Bernard Madoff pleaded guilty in Manhattan Federal Court Thursday to 11 felony counts, according to a published report. Reuters reported that Madoff conceded that he swindled billions of dollars from investors over at least two decades, in what has been called the largest Wall Street scam in history.

“I operated a Ponzi scheme,” said Madoff to the packed courtroom, after U.S. District Judge Denny Chin told him to explain his crimes.

“I thought it would end quickly, but it proved impossible,” said Madoff, who stole from more than 4,000 victims through his investment firm. “I am ashamed for these criminal acts. I always knew this day would come.”

U.S. District Court Judge Denny Chin remanded the 70-year-old to jail following his confession.

He could face a maximum 150-year sentence. His sentencing was set for June 16.

Madoff admitted that he never invested his clients’ money, and that he deposited the funds into a “Chase Manhattan” bank.

“When money was requested, I paid it out from the Chase account,” he said.

As Madoff wrung his hands and made other nervous gestures, the judge suggested that he pour himself a glass of water.

Madoff created a decades-long scheme in which new investments were used to fund payoffs to earlier investors, to falsely create the appearance of legitimate returns.

Here’s the AP’s list of charges and possibly penalties:

Count 1: Securities fraud. Maximum penalty: 20 years in prison; fine of the greatest of $5 million or twice the gross gain or loss from the offense; restitution.
Count 2: Investment adviser fraud. Maximum penalty: Five years in prison, fine and restitution.
Count 3: Mail fraud. Maximum penalty: 20 years in prison, fine and restitution.
Count 4: Wire fraud. Maximum penalty: 20 years in prison, fine and restitution.
Count 5: International money laundering, related to transfer of funds between New York-based brokerage operation and London trading desk. Maximum penalty: 20 years in prison, fine and restitution.
Count 6: International money laundering. Maximum penalty: 20 years in prison, fine and restitution.
Count 7: Money laundering. Maximum penalty: 10 years in prison, fine and restitution.
Count 8: False statements. Maximum penalty: Five years in prison, fine and restitution.
Count 9: Perjury. Maximum penalty: Five years in prison, fine and restitution.
Count 10: Making a false filing with the Securities and Exchange Commission. Maximum Penalty: 20 years in prison, fine and restitution.
Count 11: Theft from an employee benefit plan, for failing to invest pension fund assets on behalf of about 35 labor union pension plans. Maximum penalty: Five years in prison, fine and restitution.

Source:CNN

Tags: bernard madoff, Bernie Madoff, charles ponzi, felony counts, madoff, ponzi scheme, scam, swindler